Orbitz takes G2, employees to court (02/28/2005) Charges start-up stole trade secrets. By Dennis Schaal
Anticipating the Orbitz suit, G2 filed a motion for declaratory judgment against Orbitz and its parent company, Cendant, asking the court to declare that the G2 employees were not in violation of their agreements with Orbitz.
In essence, G2 acknowledged that Orbitz’s claims, communicated to G2 prior to the filing of Orbitz’s suit, created a legal controversy, and G2 sought a binding judgment on the matter in case Orbitz filed suit. In its filing, G2 argued that much of the core technology it uses to connect to airlines and search for fares is licensed from Navitaire and ITA Software, respectively, and that the Navitaire portion was developed before Orbitz’s Supplier Link was created.
G2 claims it engaged in extensive settlement discussions about these issues with Orbitz, but that talks stalled after Cendant acquired Orbitz. -- D.S.
Orbitz secretly developed and field-tested an alternative distribution system for travel agents, a project it undertook when it was owned by the airlines, the company disclosed. The disclosure emerged in a lawsuit in which Orbitz accused G2 SwitchWorks and six G2 employees and consultants, all of whom are former Orbitz employees, with stealing Orbitz trade secrets to develop the G2 reservations system
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